Peloton makes connected fitness equipment and pairs it with a subscription to instructor-led workout content. The flagship product is the Peloton Bike, a stationary bike with an HD touchscreen that gives members access to live and on-demand classes led by Peloton's proprietary instructors. Peloton also sells the Tread and Tread+ (treadmills) and Row (rowing machine), and owns Precor, a commercial fitness equipment brand present in 80,000+ gym and hotel facilities across 60+ countries. Peloton follows a razor-and-blades model: sell premium hardware once, then earn recurring subscription revenue for as long as the member stays. Hardware generates modest margins, while the subscription segment (~67% of revenue) carries ~70% gross margins and drives profitability. The core All-Access Membership runs ~$44/month and gives a household full access to tens of thousands of cycling, running, strength, yoga, and other classes taught by 50+ proprietary instructors. Members can also access content via the Peloton App without owning hardware. Peloton sells direct-to-consumer through its website, showrooms, and an inside sales team, and also distributes through Amazon, Dick's Sporting Goods, and Costco. Under CEO Peter Stern, who joined in early 2025, Peloton is executing a turnaround focused on expanding from cardio into broader wellness (strength, recovery, mental well-being), deploying AI for personalization and content translation, and growing its commercial and retail footprint. Monthly Connected Fitness churn is low at ~1.2–1.9%, though subscriber counts have declined since the COVID-era peak, and returning to subscriber growth is the central challenge.